All Forum Posts by: Fred Cannon

@Jim K. I think

You need to have a connection with a contractor. also if the lease is not signed you are not legally obligated, however that is bad way to do business. I would look for a short term rental or hotel room until the repair is made. The repair could be done in a couple of days, but if you don't have someone you use regularly then you have to wait. I use the same company for each repair, the same AC company for each service call, the same plumber etc. they get my business repeatedly and they respond accordingly to the urgency of my request. If you don't have that relationship then offer to pay more that the estimate for quicker response. . .

@Llewelyn A. All true. The real test is what return are you getting on money invested. If you pay cash of course you get cash flow but if it's only 2--5 percent is it worth the risk of a bad tenant, downturn in prices, or natural disaster. I have a 10% rule. If it doesn't make that then I keep looking. I generally pay cash and 10% gives me a great return if considering appreciation on top of that. Everyone has their rules of the road, it's just what you are comfortable with. People say I'm crazy to pay cash but I am not comfortable with lots of debt and I manage my own rentals. I am retired as well so it gives me a job lol.

@Chris London how is uncollected rent is a tax benefit. There are income and expenses. Not sure where uncollected rent fits in.

@Nathan Yarnell tax benefits are great if you have lots of income but they will not put any food on your table. If you are losing money of $175 a month I wouldn't do it. Sounds like your realtor is not a real estate investor, and is interested in her commission more that your livelihood.

Co own two properties with sister. We plan to sell one unit at the next vacancy. Can I do a 1031 exchange and buy her out of the second unit with the proceeds received. These are identical properties (condos) same pricing

@Arianna Crawford when you say boyfriend that makes me nervous. If you are committed enough to own property together and share bills then you are putting yourselves ( and he is to) at risk for a messy ending. A divorce is bad enough legally but a girlfriend/boyfriend split with joint property and joint bills, etc, is something that would scare me. Just make sure you are legally protecting yourself. As far as your question, if you can comfortable keep the rental and it cash flows 10% of what you have invested then you should keep it. Just the appreciation, mortgage pay down, and the tax benefits should offset any downturn in the market if that should occur. If keeping the rental will cause you a financial strain and being that you are in a boyfriend/girlfriend relationship I would sell. If you sell make sure you split to proceeds. I wish you the best, if you were my daughter I would be extremely nervous Dad, same goes if you boyfriend was my son. My commit is not about your relationship but about the legal protection you don't have in this type of situation.

@Daniel Wrentz. I like the mortgage pay down, forced savings, and 30 years of low interest. Interest only for a rehab that your flipping is a good deal but for long term I want to building up equity snd have an interest rate that is low and never changes.

@Lourdes Garcia I only buy new and not the low end. A repair can be half the cost of a new appliance. The low end models will last 3-4 years, a used appliance May last you 2 years, a good appliance will last you 10 years. Don't be penny wise and dollar foolish. Plus your tenant will appreciate quality appliances and when renting out nothing say no thanks like a worn out ugly beat up appliance. It's a capital expense and a good write off.

@Todd Kozak. I would hire a lawyer and start the eviction process. If the lease has expired and she is not responding and not paying rent then you really have only one option. I have done one eviction myself and it was a long drawn out affair. After that I use a lawyer, I first communicate that I am starting the eviction process and explain that they will be getting notice from lawyer within 3 days. If you try to

Do it yourself it will take 3 months and way to many phone calls.

@Marina Loos don't forget about loss of income. If your policy is for. Rental house there should be a clause to cover the rent during the rehab, or maybe the tenants' insurance has that as well. I lost 8 months to a rehab cause by hurricane. Got a very nice rehab plus all the rent It was a pain but I came out on the good side.